UNIT I Introduction to Investment
Investment Objectives – Investment Process – Avenues of Investment – Investment and Speculation – Investment information – Risk and Return – Types of Risk - Risk Return Trade off – Risk Exposure – Expected Return - Risk and Return analysis of individual securities – Standard Deviation
UNIT II Securities Market
Capital market – Primary market and Secondary market – process of IPO –FPO– Listing of Securities – Secondary market trading and operations – Regulating bodies – SEBI – Stock exchanges – Stock exchanges in India – BSE – NSE –SEBI act – SCRA– Index Calculation – Global Index – Global exchanges.
UNIT III Fundamental and Technical Analysis
Fundamental analysis: Economic analysis – Economic forecasting and Stock Investment Decisions. Industry analysis – Industry classification - Industry life cycle – Evaluating Industry Relevant factors. Company Analysis – Forecasting earnings. Technical Analysis – ROC –MACC – Oscillators –Trends – RSI
UNIT IV Valuation of Securities
Valuation of Securities – Valuation of Equity – dividend discount model – Zero Growth Model – Constant Growth Model. Valuation of Preference shares – Valuation of Bonds – YTM – YTC Arbitrage pricing Theory – CAPM – EMH.
UNIT V Portfolio Management
Portfolio Management – Steps in Portfolio Construction – Diversification – types of Diversification – Portfolio Risk and Return analysis – Marcowitz portfolio selection model. Portfolio Evaluation – Jenson Index – Sharpe Index – Treynor’s Index –– Portfolio Revision – Optimal Portfolio
@ 2020 - 2021 Copyright, SRM Institute of Science and Technology (formerly known as SRM University), All Rights Reserved